Why does avalanche save more money?

Targeting high-interest debt first reduces the principal that high-rate interest compounds on. On $30,000 across credit cards, avalanche can save $2,000-$8,000 in interest vs snowball.

What if the highest-rate debt is also the largest?

Avalanche still wins mathematically. If motivation is an issue, consider a hybrid: pay off one small balance first for a win, then switch to avalanche order.

Should I include my mortgage in the avalanche?

Generally no. Mortgage rates are typically low, interest is tax-deductible, and prepaying mortgage has an opportunity cost if you could invest at higher returns.

Debt Avalanche Payoff Calculator

Order debts by highest interest rate first and calculate payoff timeline. Minimizes total interest paid compared to snowball method.

Use the full interactive calculator below, or

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Debt Avalanche Payoff Calculator

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Frequently Asked Questions

Why does avalanche save more money?

What if the highest-rate debt is also the largest?

Should I include my mortgage in the avalanche?